Facts
The applicant joined the Department of Revenue as an Inspector in 1982 and retired as an Assistant Commissioner in 2016
Source reference: para. 2Following the implementation of the 5th Central Pay Commission (CPC) effective 01.01.1996, the pay scales for Inspectors and Superintendents were initially fixed at Rs. 5500-9000 and Rs. 6500-10500 respectively
Source reference: para. 2Due to an acknowledged anomaly, the Union Government upgraded these scales to Rs. 6500-10500 and Rs. 7500-12000 via a Ministry of Finance OM dated 21.04.2004
Source reference: para. 2However, this benefit was granted prospectively from the date of the OM rather than from 01.01.1996.
Source reference: para. 2The applicant submitted a representation in 2025 seeking retrospective notional fixation from 01.01.1996 based on favorable judgments from various High Courts and the Supreme Court
Source reference: para. 2The respondents rejected this representation on 12.08.2025, prompting the current Original Application (OA)
Source reference: para. 2Issues
1. Whether the applicant is entitled to the benefit of revised pay scales notionally from 01.01.1996 and on an actual basis from 21.04.2004
Source reference: para. 212. Whether the claim is barred by limitation and whether the applicant is a "fence-sitter" precluded from seeking relief due to delay
Source reference: para. 13-153. Whether the previous judicial pronouncements on this subject are judgments in rem or in personam
Source reference: para. 35Law Applied
The Tribunal applied the principles of Article 14 of the Constitution of India regarding parity and the doctrine of equal treatment for similarly situated employees
Source reference: para. 34It relied on State of Karnataka v. C. Lalitha, which establishes that service jurisprudence requires uniform treatment of similarly situated persons regardless of who approached the court first
Source reference: para. 32The Tribunal also considered Section 21 of the Administrative Tribunals Act, 1985, regarding limitation
Source reference: para. 13it balanced it against the principle in K.L. Shephard v. Union of India, which states there is no justification to penalize employees for not having litigated earlier if they are entitled to the same benefits as petitioners
Source reference: para. 33Furthermore, it followed the precedent set by the Hyderabad Bench in OA 1089/2019, affirmed by the Telangana High Court and the Supreme Court, which granted notional fixation from 01.01.1996
Source reference: para. 26-28Reasoning
The Tribunal rejected the respondents' contention that the claim was stale or barred by limitation. It reasoned that pay fixation constitutes a recurring cause of action
Source reference: para. 30Citing the Delhi High Court, the Tribunal noted that once the government accepts a Pay Commission recommendation and multiple courts affirm the right to retrospective notional fixation, the department should extend benefits to all similarly placed employees without forcing each individual to litigate
Source reference: para. 31The Tribunal observed that a Special Anomaly Committee had already recommended these benefits for CBDT employees; since CBIC and CBDT both operate under the Department of Revenue, denying the same to CBIC employees was discriminatory
Source reference: para. 6, 27The Tribunal further held that the previous judgments were judgments in rem because they addressed a general pay anomaly affecting an entire class of employees, making the "fence-sitter" argument inapplicable
Source reference: para. 35, 37Holding
The Tribunal allowed the OA and quashed the impugned rejection order dated 12.08.2025
It held that the applicant is entitled to the upgraded pay scales on a notional basis from 01.01.1996 and on an actual monetary basis from 21.04.2004
Source reference: para. 40The respondents were directed to refix the applicant's pay under the Central Civil Services (Revised Pay) Rules, 1997, and calculate all consequential benefits, including pensionary arrears, within two months of receiving the order
Source reference: para. 40No costs were awarded
Source reference: para. 41Original Court PDF
A MuthukrishnanvsM/O FINANCE
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